The Swiss stock exchange operator may sell the payments division as early as this month. The deal is being handled by a foreign bank, according to information obtained by finews.asia.
«We aim to conclude the transaction at the beginning of the third quarter 2018 at the latest,» said SIX boss Jos Dijsselhof in March, referring to the planned sale of the payments division. SIX, which maintains the stock exchange, will retain a minority stake in the payments unit to secure a share in its future earnings.
It looks as if the divestment will come even earlier than originally mooted, according to a reliable source, who spoke on condition of anonymity. The partial sale may happen sometime in the coming three weeks – before the end of May. SIX has three bidders interested in the business.
No SIX Comment
A number of companies interested in buying the payments unit have been mentioned in the media: France’s Ingenico, a mobile payment services provider; First Data as well as private equity firms Warburg Pincus and Hellman & Friedman from the U.S.; Switzerland’s «Handelszeitung» recently said that Denmark’s Nets (which is owned by Hellman & Friedman) and the French firms Wordline and Natixis also were interested in buying the unit.
SIX didn’t comment on such «speculation». It also declined to comment about the information that a foreign bank was advising on the deal: J.P. Morgan, the U.S. bank which is moving swiftly to build its investment banking under the guidance of Swiss country chief Nick Bossart. The company didn't comment either.
Big Chunk Need Replacing
J.P. Morgan’s biggest Swiss rivals, UBS and Credit Suisse are said to have pulled out of the deal, which makes sense as they risk being caught out by conflicts of interest. The big two are co-owners of SIX and have significant influence over the decision-making process at the board.
SIX meanwhile is bracing for yet another reorganization. Some 1,000 staff will have to move to the new owner, with 1 billion Swiss francs in revenue being removed from its books. It hopes to replace the volume through the cooperation with the new owners and the revenue from the stake it will keep.
